Back To CourseSenior Professional in Human Resources - International (SPHRi): Exam Prep & Study Guide
10 chapters | 86 lessons
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Noel has taught college Accounting and a host of other related topics and has a dual Master's Degree in Accounting/Finance. She is currently working on her Doctoral Degree.
Meet Adam, a human resource manager at a small firm. Adam is having a tough year because several employees have left his company to pursue other job opportunities. As an HR manager, Adam is in charge of attracting, hiring, and retaining employees within the company. Adam knows when his boss gets the updated report on employee retention, he is not going to be very happy. Employee retention is the ability of an organization to keep employees.
Adam notices that over the past six months, his employee retention rate has decreased drastically. The employee retention rate is a measurement that helps HR managers determine how many employees the organization can keep over a period of time, and it's expressed as a percentage. In fact, the employee retention rate that Adam will report to his manager is 30%. This means that the company kept only 30% of its employees over a particular period. Adam must make some changes to increase his employee retention rate, so he begins to research specific strategies to keep more employees working for the company longer.
Before Adam comes up with an action plan to increase employee retention, he needs to find out why employees are leaving the company. After some extensive research, Adam discovers there can be many reasons employees leave an organization, including:
Wow! Adam is shocked by all of the reasons that employees might leave a company. He sure has his work cut out for him, because he must figure out which of these are the top reasons people are leaving his company. After a brief survey, Adam discovers the main three reasons his employees are leaving: There aren't enough opportunities for growth, employees don't feel valued, and they're overworked and experiencing stress related to job functions and activities.
Adam knows what to do now, and he comes up with a few employee retention strategies he believes will help keep his employees working for the company. Through this process, he must reduce the turnover rate. The turnover rate is a measurement that indicates the number of employees who leave a company and are replaced by other employees. It's important for Adam to understand the turnover rate because this measurement helps him keep track, not only of the reasons why employees are leaving, but also how quickly they leave the company and need to be replaced.
Adam creates a new training program for all newly hired employees. He wants to make sure that they're not only aware of all the tools they have available to them to perform their jobs, but that each employee knows how to use these tools and understands their individual role. Adam also creates a mentoring program that involves partnering a new employee with a senior leader to job shadow the leader and increase awareness of how leaders work within the organization to make decisions.
Adam wants the employees to feel valued and to have a balance between work and personal life activities. He implements a flexible schedule where employees can work with their managers to develop a work week schedule that will meet the needs of the organization, but also take the employees' personal schedule and commute time into consideration. The employees tell him that this will be a great strategy to help them obtain a better balance between their job and personal activities.
Finally, Adam creates more opportunities for employees to grow and be promoted within the organization. Employees are nominated by their managers to attend this employee leadership program, and it gives them the opportunity to work in various other fields for a two-month time frame. This allows the employees to gain exposure to leaders and other business areas where they might want to work in the future. Also, it gives them a sense of inclusion and ownership over their career paths.
Adam is successful at achieving his goal of increasing the employee retention rate and decreasing the employee turnover rate. The employee retention rate is a measurement that indicates how many employees a company can keep over a certain period. The employee turnover rate is a measure of how many employees leave the company and are replaced by other employees over a certain period. Adam's new employee retention rate is 80%, and his employee turnover rate is less than 10%. Wow, what a huge accomplishment! When companies implement employee retention strategies, employees are more willing to stay because they feel valued, they see more opportunities to advance their careers, and they don't feel stressed or overworked in their roles.
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